The key will be whether companies lift salaries in April when the consumption tax goes up to 8% from 5%, Mr. Abe told members of the ruling Liberal Democratic Party on Tuesday.

Leaders of the country’s most influential business lobby, the Japan Business Federation, said they are encouraging companies to increase salaries. But while few top executives were willing to disagree with this worthy goal at a New Year party Tuesday, many remained noncommittal.

Some executives said it was too early to promise salary increases. Once raised, salaries can’t be cut without sacrificing morale, they said.

“This is the deciding year,” said Takeshi Niinami, chief executive officer at Lawson Inc., Japan’s second-largest convenience chain at the party, hosted by Japan’s top three top business lobbies, the Japan Chamber of Commerce and Industry, the Japan Business Federation, and the Japan Association of Corporate Executives. He said that while it will be too early to raise base salaries this year, if it’s clear Japan is exiting deflation, the company will be able to raise salaries next year.

At a separate party hosted by the Japan Automobile Manufacturers Association, Akio Toyoda, president of Toyota Motor Corp., the country’s biggest manufacturer, said only that the car maker was discussing the matter with unions. The decision on increasing wages “should be up to each company,” he said.

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